Question
1.Given the Production Function of a perfectly competitive firm, Q = 120L + 9L 2 - 0.5L 3 , where Q = Output and L
1.Given the Production Function of a perfectly competitive firm, Q = 120L + 9L2 - 0.5L3, where Q = Output and L = labor input
a.At what value of L will Diminishing Returns take effect?
b.Calculate the range of values for labor over which stages I, II, and III occur?
c.Suppose that the wage rate is $60 and the price of output is $2 per unit.How many workers should the firm hire?
d.If demand forecasts predict an output level between 3500 and 3800 in the next decade, what would be your long-run strategy to optimize the resources of your company?
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Foundations of the Legal Environment of Business
Authors: Marianne M. Jennings
3rd edition
978-1305117457
